Question asked by Robert Cameron 9 years ago
just bought on a new van on finance. I've created a purchase invoice on clear books for the invoice for vat purposes, how do I pay the original invoice? do I then create a new invoice from the finance company, no vat on this invoice, to be be able to show monthly repayments?
Hi Robert
Create the bill as usual payable to the supplier*
Great a new bank account [loan account]
Pay the bill using the loan account.
Class the monthly repayments as transfers between your bank and the loan account.
Adjust each month/quarter/year [your choice really] for the interest.
*Vehicles should be listed as an asset on the balance sheet and depreciated appropriately. Ensure you're aware of the rules surrounding capital allowances [i.e. the tax treatment of the purchase] and the potential benefit in kind issues you may have [if LTD]. A couple of links below:
https://www.gov.uk/capital-allowances/overview https://www.gov.uk/expenses-and-benefits-company-vans/overview
Best answerThank you, all done
but the only issue is that loan account goes into current liability whereas it should be non current liability.
Hi Abdul,
I see, in this case, the best workaround would be to create a purchase credit note coded to a non-current liability account. This can then be allocated to the bill of the asset. When repayments come through the bank feed, they can be coded to the non-current liability loan account code to reduce the outstanding amount.
Tommy
You must 